Bank Of America Beats Earnings And Shares Have Popped

Bank of American announced its fourth quarter earnings for 2013
this morning beats analyst estimates by $0.02 with an earnings
per share of $0.29 and revenue at $21.7 Billion.

Analysts expected an earnings per share to come in at $0.27 with
a revenue of $21.1 billion.

Shares are up 2% in premarket trading on this news.

There are two major things Wall Street is waiting to see in this
report — how the 'New BAC' plan of cost cutting that Brian
Moynihan has championed is going, and how Bank of America's
mortgage business.

One crazy cost cutting fact for you — the number of employees at
Bank of America is down 9% since New BAC started.

An yesterday, we got a look at how the mortgage business is doing
at JP Morgan and Wells Fargo, and it wasn't great. Wells Fargo
managed to get through it by cost cutting, but JP Morgan, weighed
down with legal fees, disappointed the Street. Federal Reserve
survey results showed weaker demand in both prime and on
traditional mortgage loans this quarter, according to FactSet
data, so this shouldn't be too surprising.

Here's what CEO Moyninhan said in his letter accompanying
earnings.

Bank of America Corporation today reported net income of $3.4
billion, or $0.29 per diluted share, for the fourth quarter of
2013, compared to $732 million, or $0.03 per diluted share in the
year-ago period. Revenue, net of interest expense, on an FTE
basisA rose 15 percent from the fourth quarter of 2012
to $21.7 billion.

For the year ended December 31, 2013, net income increased
to $11.4 billion, or $0.90 per diluted share, from $4.2 billion,
or $0.25 per diluted share, in 2012. Revenue, net of interest
expense, on an FTE basisA rose 7 percent to $89.8
billion.

"We are pleased to see the core businesses continue to
perform well, serving our customers and clients," said Chief
Executive Officer Brian Moynihan. "While work remains on past
issues, our two hundred forty thousand teammates continue to do a
great job winning in the marketplace."

“We enter this year with one of the strongest balance
sheets in our company’s history,” said Chief Financial Officer
Bruce Thompson. “Capital and liquidity are at record levels,
credit losses are at historic lows, our cost savings initiatives
are on track and yielding significant savings, and our businesses
are seeing good momentum.”

CLiquidity Remained Strong at $376 Billion; Parent Company
Time-to-required Funding Improved to 38 Months From 33
MonthsInitiated Capital Return to Shareholders Through Repurchase
of $3.2 Billion of Common Stock at an Average Price of $13.90 per
Share